Ethereum Revisited $2.5K But Recovery Is Likely Capped

Ethereum revisited $2.5K and extended the decline against the US dollar but the price is still struggling and the recovery is likely capped so let’s read further in today’s latest Ethereum news.

Ethereum revisited $2.5K after it started a fresh decline from the $2800 zone. The price is now tradign at the 100 hourly simple moving average. There’s a connecting bearish line forming near the $2620 resistance on the hourly charts of the pair and it can extend the decline below $2500 if it fails to recover above $2650 resistance.  Ethereum failed to start a new increase above $2800 and then started another drop while trading below the $2650 support zone. The bears took control and were able to push the price below $2550 while ETH tested this same support level and settled below the 100 hourly simple moving average with a low forming near $2508.

eth price
ETH 24-hour Price Chart (Source: Coingecko)

On the upside, the initial resistnace is close to 42550 level and it Is also near the 23.6% fib retracement level of the decline from $2684 high to $2508 low. The first major resistance is seen near the $2600 level and it is close to the 50% fib retracement level from the decline at $2684 high to $2508 low. There’s a connecting bearish trend line forming with the resistance near $2620 on the hourly charts of the pair. The next major resistance could be near $2650 and the 100 hourly simple moving average while more gains could see the price to $2800 resistance zone in the near term.

If ETH fails to start afresh increase above this level, it could extend its decline and initial support on the downside will be near $2510. The next major support is close to $2500 below which the price could gain some bearish momentum and in this case, the ETH price can revisit the $2500 support zone with more losses calling in for a move below $2300. The hourly MACD for the pair is gaining pace in the bearish zone while the RSI for the pair is below the 40 levels. The major support level is set at $2500 and the resistance one at $2650.

Cryptocurrency Market Overview. Source Quantify Crypto

Layer 1 crypto coins like Fantom, Near, Cosmos, Solana, and others dropped points in the past 24 hours. Some of the Layer 1 crypto coins had a rough day with the market leaders like Near, Cosmos, and Terra dropping by around 5%. The leading smart contract platform Ethereum is also down by 3% and dropped from over $2,600to $2,500 with the damage to other protocols being much worse.

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Author: Stefan